Avicorp has a 117 million debt issue outstanding with a 58, Finance Basics

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Avicorp has a 117 million debt issue outstanding with a 58

Avicorp has a $11.7 million debt issue outstanding, with a 5.8% coupon rate. The debt has semi-annual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at 95% of par value.

a) What is Avicorp's pre-tax cost of debt?

b) If Avicorp faces a 40% tax rate, what is its after-tax cost of debt?

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Finance Basics: Avicorp has a 117 million debt issue outstanding with a 58

Reference No:- TGS0602321

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Finance Basics: Avicorp has a 117 million debt issue outstanding with a 58

Reference No:- TGS0602321

Have a Question? (oR Write a Review)

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Finance Basics: Avicorp has a 117 million debt issue outstanding with a 58

Reference No:- TGS0602321

Recent Questions Asked Finance Basics

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